On September 4, Ethereum (ETH) reported a temporary price of 4,374 USD during the pullback market. Although the price movement of ETH usually synchronizes with Bitcoin (BTC), since August, ETH has not only remained at a high level, but its volatility has also been lower than that of BTC, showing a significantly better performance than the market leader Bitcoin, driven by capital rotation and demand for Digital Asset Token (DAT).
ETF inflows and staking supply tightening boost ETH
LVRG Research director Nick Ruck pointed out that the strong performance of ETH mainly comes from three factors:
ETF capital inflow is strong: The inflow of spot Ethereum ETFs in July and August exceeded that of Bitcoin ETFs.
Staking lock-up increase: leading to further tightening of market circulating supply.
Growth in Demand for Digital Asset Vaults (DAT): Enterprises and institutions continue to increase their holdings of ETH.
Presto research analyst Min Jung added that DAT Company's continuous buying is an important force supporting ETH price, attributing Wednesday's significant rise in ETH to this. However, she also reminded to pay attention to the sustainability of DAT's capital flow.
Capital Rotation: From BTC to ETH
Analysts generally believe that funds are rotating from BTC to ETH.
Reason: After BTC reached an all-time high in July and August, some traders chose to take profits and turned to ETH in search of greater upward potential.
Trend: The low fluctuation of ETH and the advantage of capital inflow make it more attractive in the recent market environment.
Digital Asset Vault (DAT) Becomes a Key Force in the Market
Since 2024, corporate digital asset reserves have become an important trend in the crypto market:
BTC represents: Michael Saylor's MicroStrategy has once again increased its holdings by 4,048 BTC, bringing the total holdings to 636,505 coins.
ETH represents: The four major holders, Bitmine, SharpLink Gaming, Bit Digital, and BTCS, collectively hold 2.7 million ETH, worth over 12 billion dollars.
This shows that more and more companies are beginning to incorporate ETH into their asset reserves, driving its long-term value support.
Macro Background: The Federal Reserve and Non-Farm Data Become Key
Traders are closely monitoring U.S. macroeconomic data and Federal Reserve policy:
Non-Farm Payroll (NFP): To be released on September 5, higher-than-expected data may indicate economic overheating and inflationary pressures, putting pressure on risk assets.
FOMC Meeting: Held on September 16-17, the CME FedWatch tool shows a 97.6% probability of a 25 basis point rate cut.
If interest rates are cut, it will further stimulate the inflow of funds into the cryptocurrency market, which is beneficial for both ETH and BTC, but ETH may benefit more in the context of capital rotation.
Technical Outlook
ETH key support: $4,300
Short-term resistance: $4,500
Mid-term target: If the capital inflow continues and breaks through 4,500 USD, it will be expected to challenge the 5,000 USD integer level.
Conclusion
Under the multiple drivers of strong inflows into ETFs, a tightening of staking supply, and continued accumulation of digital asset reserves, Ethereum has recently outperformed Bitcoin significantly. With the acceleration of capital rotation and favorable expectations for macro policies, ETH is expected to continue outperforming BTC in the fourth quarter, becoming the market focus.
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Analyst: Capital rotation and the prosperity of digital asset pools drive Ethereum's performance to surpass Bitcoin.
On September 4, Ethereum (ETH) reported a temporary price of 4,374 USD during the pullback market. Although the price movement of ETH usually synchronizes with Bitcoin (BTC), since August, ETH has not only remained at a high level, but its volatility has also been lower than that of BTC, showing a significantly better performance than the market leader Bitcoin, driven by capital rotation and demand for Digital Asset Token (DAT).
ETF inflows and staking supply tightening boost ETH
LVRG Research director Nick Ruck pointed out that the strong performance of ETH mainly comes from three factors:
ETF capital inflow is strong: The inflow of spot Ethereum ETFs in July and August exceeded that of Bitcoin ETFs.
Staking lock-up increase: leading to further tightening of market circulating supply.
Growth in Demand for Digital Asset Vaults (DAT): Enterprises and institutions continue to increase their holdings of ETH.
Presto research analyst Min Jung added that DAT Company's continuous buying is an important force supporting ETH price, attributing Wednesday's significant rise in ETH to this. However, she also reminded to pay attention to the sustainability of DAT's capital flow.
Capital Rotation: From BTC to ETH
Analysts generally believe that funds are rotating from BTC to ETH.
Reason: After BTC reached an all-time high in July and August, some traders chose to take profits and turned to ETH in search of greater upward potential.
Trend: The low fluctuation of ETH and the advantage of capital inflow make it more attractive in the recent market environment.
Digital Asset Vault (DAT) Becomes a Key Force in the Market
Since 2024, corporate digital asset reserves have become an important trend in the crypto market:
BTC represents: Michael Saylor's MicroStrategy has once again increased its holdings by 4,048 BTC, bringing the total holdings to 636,505 coins.
ETH represents: The four major holders, Bitmine, SharpLink Gaming, Bit Digital, and BTCS, collectively hold 2.7 million ETH, worth over 12 billion dollars.
This shows that more and more companies are beginning to incorporate ETH into their asset reserves, driving its long-term value support.
Macro Background: The Federal Reserve and Non-Farm Data Become Key
Traders are closely monitoring U.S. macroeconomic data and Federal Reserve policy:
Non-Farm Payroll (NFP): To be released on September 5, higher-than-expected data may indicate economic overheating and inflationary pressures, putting pressure on risk assets.
FOMC Meeting: Held on September 16-17, the CME FedWatch tool shows a 97.6% probability of a 25 basis point rate cut.
If interest rates are cut, it will further stimulate the inflow of funds into the cryptocurrency market, which is beneficial for both ETH and BTC, but ETH may benefit more in the context of capital rotation.
Technical Outlook
ETH key support: $4,300
Short-term resistance: $4,500
Mid-term target: If the capital inflow continues and breaks through 4,500 USD, it will be expected to challenge the 5,000 USD integer level.
Conclusion
Under the multiple drivers of strong inflows into ETFs, a tightening of staking supply, and continued accumulation of digital asset reserves, Ethereum has recently outperformed Bitcoin significantly. With the acceleration of capital rotation and favorable expectations for macro policies, ETH is expected to continue outperforming BTC in the fourth quarter, becoming the market focus.